Kunming Yunnei Power Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(In million yuan)
FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Increases (%) Factors
Sales 2,571.15 2,381.71 7.95% -In 2013, the Company adjusted product structure and improved average selling price;
-The company increased parts sales to enlarge sales revenue.
Operating profit 127.09 42.33 200.24% -Profit increased as a result of new product development, marketing and cost control.
Ordinary profit 165.03 50.31 228.03%
Net profit 130.83 43.02 204.11%


-The Company announced that it will acquire the remaining 28.62 percent share in Chengdu Yunnei Power Co., Ltd. to turn the Chengdu facility into its wholly owned subsidiary. Shares will be transferred from Chengdu Diesel Engine General Plant for approximately CNY 45.2 million. Chengdu Diesel Engine General Plant is owned 100 percent by Yunnei Power Group Co., Ltd., which is Kunming Yunnei Power’s parent company. (From a press release on April 28, 2014)


-The Company announced that it is mass-producing its M15 engines for Chongqing Changan Kuayue Automobile’s V5. It has delivered 300 engines by November 2013. (From a press release on November 13, 2013)

Off the Production Line

-Shandong Yunnei Power Co., Ltd., a subsidiary of the Company, announced that its diesel engine production line began operating and produced 100 units of 490GB diesel engines on February 28, 2014. (From a press release on March 19, 2014)

-Shandong Yunnei Power Co., Ltd., a subsidiary of the Company, started to produce diesel engines at its new plant in Weifang, Shandong. (From news releases issued by multiple sources on December 31, 2013)

-In January 2013, the Company announced that it has produced its 5,500th D19 diesel engine compliant with the Euro V regulations for the U.K. market. The D19 engine for passenger vehicles was developed based on Euro lV engines. It was engineered jointly by Kunming Yunnei, SAIC and FEV of Germany according to an agreement made in 2009. The development project  involved an investment of approximately 120 million yuan. Major performance indexes of the D19 engine even exceeded those of engines made by European engine manufacturers. Mass production of the D19 Euro V engine started on October 30, 2012. It will be installed on the MG6 to be released in the U.K. in the first quarter of 2013. (From news releases issued by multiple sources on January 11, 2013)

Holding Company Restructuring

-In March 2014, the Company announced that Yunnan Diesel Engine Plant, which owns a majority of Kunming Yunnei Power shares, reformed its organization and changed the its name into Yunnei Power Group Co., Ltd. effective January 24, 2014. There was no change in the company’s shareholding. (From an announcement by the company on March 14, 2014)


R&D Expenditure

-In 2013, the Company's R&D expenses is CNY 119.67 million, 4.65% of the Company's total sales.

Product Development

(in million yuan)

R&D Expenditure in 2013

D25/D30 project to China IV Emissions


D19 project to Euro IV/V Emissions 51.29
D09 project to China IV Emissions 14.42
Development of YN series diesel engines conforming to China IV Emissions
D20TCI project to China IV Emissions 1.28
Development of natural gas engines conforming to China V Emissions
Project 863 of development of light vehicle diesels 0.99
YNF40 diesel engines development and industrialization 0.03
Provincial diesel engineering technology research center 0.10

R&D Structure

Facility Overview
Internal Combustion Engine Institute - Designing and developing diesel engines, and developing manufacturing facilities to produce them
- This facility and Beijing Institute of Technology are jointly operating the Internal Combustion Engine Engineering Center
- This facility and Kunming Science & Technology University are jointly operating the Diesel Engine Test & Research Center
- Set up Su Wanhua Academician Workstation in cooperation with Tianjin University 

-The Company is identified as a National Passenger Car Diesel Engine High-tech Industrial Base, Diesel Engine Engineering Technology Research Center of Yunnan Province, National High-tech Enterprises and International Research Center.

-In October 2013, the Company has set up a joint engine laboratory with the Tongji University located on the premise of the university.  (From a press release on November 3, 2013)

-In August 2013, Chengdu Yunnei Power Co., Ltd., which is a subsidiary of the Company, announced that it will construct a new research facility. The construction project was decided in response to a request from the National Gas-fuel Automobile Engineering Technology Research Center of China Automotive Engineering Institute Co. Ltd. (CAERI). The new R&D base will function as a sub facility of CAERI’s research center. Chengdu Yunnei Power hopes that this establishment will mark the first step toward forming an alliance with CAERI. (From a press release, August 23, 2013)


-As of Dec. 31, 2013, the Company applied 99 patents, 9 of them are invention patents. The Company was authorized 88 patents, 2 of them are invention patents.

New Product

-The Company announced that it has produced a prototype of the new YNF40 commercial vehicle diesel engine, which meets the China V emissions standards. (From a press release on January 8, 2014)

-The Company announced the release of China IV and V compliant engines. The new four engines are the D20/D25 China IV diesel engine, the YN36QNE China V natural gas engine, and the APU range extender engine. (From a press release on November 29,2013)

Investment Activities

(in million yuan)
Amount invested in 2013 Project progress
Plant construction 40.59 -
Assembly line project in Bijie 3.48 -
Yunnei Power Industrial Park project 83.26 -
Commercial vehicles capacity building 11.19 -
D series diesel engine capacity building 4.75 -
Assembly line and machinery equipments of 150,000 diesel engines 28.77 65%
Crankshaft capacity expansion project 0.65 45%
Natural gas engines equipped with vehicles exported to Iran 0.13 94%
YN27CRD engines technology transformation 0.07 -

Investment in China

-The Company announced that it will establish production and research facilities for small commercial vehicle engines. The company intends to invest up to CNY 745 million in this project, which is scheduled to be completed in three years. A technical center will be set up in the second phase of the construction project. The new plant is expected to boost the company’s annual capacity for commercial vehicle diesel engines to 100,000 units, and that for commercial vehicle natural gas engines to 50,000 units. When the new lines become operational, the company plans to produce approximately 116,000 diesel engines and natural gas engines per year. Sales target are set at CNY 2,719 million, and after-tax profit is forecast to reach CNY 279 million. (From an announcement by the company on January 3, 2014)

-The Company announced that the company and Chengdu Diesel Engine Plant will make an additional investment in Chengdu Yunnei Power Co., Ltd., their joint-venture company. Kunming Yunnei Power will invest 14.27 million yuan and  Chengdu Diesel Engine Plant 5.72 million yuan in accordance their shareholding ratio in the business. The joint venture’s capital will be thereby raised to 188.14 million yuan from current 168.14 million yuan. The added capital will be used to install new casting equipment to increase the facility’s casting capacity to parts for 50,000 vehicles, as the company aims to return to profitability. (From an announcement by the company, April 27, 2013)